HDFC Life and Exide Life's merger to be announced soon

HDFC Life Insurance Company Limited announced the completion of the acquisition of Exide Life Insurance Company Limited after receiving all the necessary regulatory approvals. Exide Life will now operate as a wholly owned subsidiary of HDFC Life.

HDFC Life completed the acquisition through issuance of about 8.70 crore shares at an issue price of Rs 685 per share and a cash payout of Rs 726 crore, aggregating to Rs 6,687 crore. Exide Industries now holds 4.1 per cent stake in HDFC Life. The process for merger of Exide Life into HDFC Life will be initiated shortly.

Exide Life’s agency based distribution model, strong presence in South India and experience across tier 2 and tier 3 locations complements HDFC Life and will help expand its market and bolster its proprietary distribution.

Vibha Padalkar, MD & CEO of HDFC Life said, “This first-of-its-kind acquisition is a reflection of our intent to build a stronger India by providing a financial safety-net to more people. Different distribution channels and a varied product mix help cater to different customer cohorts across the diverse Indian geography, and this acquisition is an important milestone towards our strategic objective of bringing more people into the fold of financial protection.”